Fixed income arbitrage top performing strategy in January

The best performing strategy in January was fixed income arbitrage (2.02 per cent) with managers finding a number of opportunities in the credit markets, which as a rule became uncorrelated to equity markets with several sectors showing positive performance.

Event driven managers were also supported by ongoing technical conditions as credit markets held steady in January despite weakness in equities and both the CS Leveraged Loan and High Yield Index sustained gains of 1.81 per cent and 1.27 per cent, respectively.